The ocean of the world's financial services industry is home to some of the most dangerous predators and the fraudsters who thrive on the damage they do.
The industry's power over consumers is unchecked and strengthening as they continue to dominate the legislative agenda and thumb their noses at regulators.

On this side of the Pecos, we'd have 'em strung up by now, but until then - read on!

Thursday, June 19, 2008

Kurt Johnson's loopy tirade against anyone and everyone involved (or not!) in his prosecution took on a really stupid approach by filing bogus UCC documents back in July of 2007, including a "UCC Financing Statement" that described a huge list of individuals as "debtors." From the most recent case (08-02325), the US Attorney's office wants to start by getting an injunction to stop at least some of Johnson's nonsense filings, for example - from the complaint:

15. Upon information and belief, the UCC Financing Statement was sent to the California Secretary of State through the U.S. Mail.

There was another similar one, but if we skip further down in the complaint, the relevant part is:

23. The UCC Financing Statement and the UCC Financing Statement Amendments were filed by defendant Johnson in an effort to establish invalid liens against employees of the United States and to wrongly and maliciously compel the payment of money by these employees.

24. In order to file a UCC Financing Statement, a debt must be owed to the filer and the debtor must authorize the filing of the UCC Financing Statement. See Cal. Com. Code §§ 9502(a), 9509(a)(1).

And he's apparently not done:

28. The UCC Financing Statement and the Financing Statement Amendment pose an immediate and irreparable injury upon the United States of America by impeding, obstructing and impairing the execution of the official duties of its employees or officers.

29. Upon information and belief, unless enjoined, Defendant will continue to file and record false and fraudulent liens and other documents against employees of the United States. For example, the Bureau of Prisons recently intercepted an additional UCC Financing Statement Amendment prepared by Defendant, which lists additional purported debtors, which was contained in an envelope addressed to the Clerk of the United States District Court for the Northern District of California.

And now, drum roll please....

32. Defendant’s conduct, as described herein, constitutes violations of 18 U.S.C. § 1341 (mail fraud) in that he has formed a scheme or artifice to defraud the United States employees identified above and the public by making material misrepresentations, including but not limited to misrepresentations that the employees are indebted to Defendant, have granted Defendant a lien in their property, and have authorized the filing of a UCC Financing Statement. Defendant has used the U.S. mails and commercial interstate carriers to further his fraudulent scheme. Defendant has used the mails in furtherance of his fraudulent scheme with the specific intent to deceive or defraud.

Johnson got an extension of time to reply and that should be as laughable as the other filings he's cobbled together, but all in all it indicates there will probably be more mail fraud indictments soon, and the best part is the case got attached so Alsup will be hearing it!